Updated: Jul 20, 2023, 11:24am
The Fed did a soft launch in late July but a more formal, wide-scale launch is planned for 2024.
The Fed said 35 banks and credit unions as well as 16 payment-process service providers are participating in the initial launch.
The central banking system lags the private, faster payments systems already in use by many large banks. The Fed also knows there’s heavy consumer demand for instant digital transactions.
FedNow has been in the works for nearly a decade. The Fed started contemplating an instant payments network in 2013 and formed the Faster Payments Task Force (FPTF) in 2015 to map out a plan.
After years of meetings, the release of several studies and a period of fielding public comments, the Fed announced FedNow in August 2019 and has been conducting pilot runs with financial institutions since then.
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